Stocks closed out a bumpy week mixed, ending a three-week stretch of losses for the S&P 500 and NASDAQ. The Dow, however, extended losses for a fourth straight week for the first time since 2014. For the week, the S&P 500 gained 0.28%, the Dow lost 0.20%, the NASDAQ gained 1.10%, and the MSCI EAFE added 0.16%.

Market reactions to the release of the April Federal Reserve Open Market Committee meeting minutes drove much of last week’s volatility. The official minutes showed that the Fed is moving away from its cautious stance and is open to raising interest rates as soon as June if data points to a solid second quarter. The unexpected hawkishness surprised many investors who weren’t expecting a hike until later this year.

However, some professional economists predicted a June hike. The most recent Wall Street Journal survey of economists showed that their experts were split, with 31.4% predicting a June increase, 21.4% favoring a July hike, and 31.4% forecasting a September increase. On the other hand, Wall Street largely discounted a June move. Early in the week, before the minutes were released, traders predicted just a 4% chance of a June rate hike. By Friday, that probability had increased to 30%. Clearly, the new information is forcing investors to revise their expectations for interest rate movements this year.

The labor market will play a major role in the Fed’s June decision. The April jobs report was softer than expected, showing that many employers were reluctant to hire in the face of uncertain business conditions. The May jobs report, due on June 3rd, will be key to showing whether the labor market has returned to a strong trend or is continuing to weaken.

Will a strong May jobs report guarantee a June rate hike? Some experts think so while others think the risks posed by Britain’s upcoming vote on whether to leave the EU (the “Brexit” you may have read about) will be enough to give the Fed pause. All told, it’s likely to be a lively June meeting at the Fed.

Volatility is likely to continue in the days and weeks ahead as analysts fixate on predicting when the central bank will raise rates again. While short-term volatility can be stressful to investors who would prefer a steady ride, it’s important not to let intraday swings and bumps in the road derail your long-term investment strategies. We’ll keep you updated.

April housing starts surge. Groundbreaking on single- and multi-family homes jumped 6.6% last month as construction firms grew more optimistic about business prospects.

Industrial production rises. Stronger demand for utilities drove industrial production 0.7% higher in April. However, the manufacturing component rose just 0.3% after declining in March, indicating that U.S. manufacturers are still struggling.

Markets reacted positively to the news that central banks are making an effort to boost the global economy, helping the major indexes post gains for the first time this year. However, the news last week wasn’t all good.

The Eurozone faces another major challenge in Greece; voters went to the polls Sunday and elected the radical left Syriza party, which wants to end austerity measures and refuse European debt inspections. Though it’s unclear if the party has enough parliament seats to form a government, the election result highlights Greek voters’ frustration with austerity and increases the risk of a so-called “Grexit,” a Greek exit from the Eurozone.[5. http://bigstory.ap.org/article/9b1816988138404e924c96a12f14bc6f/greeks-go-polls-critical-snap-general-election]

The U.S. is also facing new foreign policy challenges. The death of Saudi Arabia’s King Abdullah bin Abdulaziz Al Saud may change America’s relationship with its largest ally in the Middle East and affect global oil markets.[6. http://www.cnbc.com/id/102361930] Yemen, a major Saudi supporter and U.S. ally, also experienced leadership turmoil with the resignation of its president after being besieged by rebel fighters.[7. http://www.reuters.com/article/2015/01/25/us-yemen-security-fragmentation-analysis-idUSKBN0KY0BR20150125] If the political vacuum causes Yemen to splinter along ethnic and religious lines, it could spark civil war, also threatening U.S. policies in the Middle East.

Looking ahead, we see a lot of uncertainty this week. Though the U.S. continues to do well, we see markets driven by energy prices, worries about Europe, and concern that new central bank policies may not be enough to stoke economic activity in the rest of the world. Next week’s Federal Reserve Open Market Committee meeting will be key in setting the tone for the year’s monetary policies. Although the Fed has indicated that it may raise rates this year, the increased stimulus measures from its counterparts overseas may make it harder for the Fed to move ahead with rate hikes. Even if global economic policy isn’t part of the Fed’s mandate, the interconnectedness of the world’s economy and the importance of the U.S. dollar in global trade mean our central bankers must take into account global risks when making policy decisions.[8. http://www.reuters.com/article/2015/01/25/us-markets-stocks-usa-weekahead-idUSKBN0KY0XG20150125] The week ahead is also filled with important earnings reports, which could make or break the Q4 earnings season. Thus far, earnings have been uninspiring, though overall earnings growth is expected to be positive.[9. http://www.zacks.com/commentary/37517/make-or-break-week-for-q4-earnings-season]

When markets turn volatile, it’s important to remain disciplined by sticking to your own financial strategies while staying flexible enough to take advantage of opportunities as they arise. We’re keeping a close eye on market events as they develop and will keep you updated.

Jobless claims fall from 7-month high. Weekly claims for new unemployment benefits dropped last week, erasing the previous week’s increase, which pushed weekly claims to the highest level seen since June. Seasonal factors around holiday hiring are likely to blame for the volatility[10. http://www.cnbc.com/id/102356246]

U.S. factory activity slows. The manufacturing sector continued to grow in January, but the pace of activity slowed as new orders weakened. Though some seasonal factors may be affecting data, job creation in the sector remains steady, indicating underlying demand may not have dropped.[11. http://www.cnbc.com/id/102358956]

Single-family housing starts to reach multi-year high. Groundbreaking on new single-family homes reached the highest level in 6-1/2 years in December. Though housing activity has lagged in the last year, the new construction trend could indicate greater demand for housing as the economy improves.[12. http://www.cnbc.com/id/102352190]

Mortgage applications surge. The volume of mortgage applications increased dramatically last week, pushing total volume 41% higher than the same period last week, in another hopeful sign for the housing sector. Economists cite low mortgage rates and a reduction in Federal Housing Administration mortgage insurance premiums as factors.[13. http://www.cnbc.com/id/102353506]